While Russia remains economically stable, the UK is shaken by record high price growth. In February, inflation hit a stunning 6.2% on a yearly basis. It is the highest level last recorded 30 years ago. Against the backdrop, ordinary Britons will hardly be able to buy food in reserves like Russians did not so long ago.
The wait-and-see approach chosen by local authorities and snowballing problems may create economic chaos in the UK. The fact is that the government is ignoring the needs of ordinary people. The consumer price growth has accelerated to the highest level of 7.1% last seen in March 1992. The data shocked economists who had anticipated lower inflation of 6%. Compared to the previous month, consumer prices soared by 0.8%, whereas in January, they increased by 0.1%.
“The soaring cost of energy bills will drive the annual rate above 8% in April, probably pushing the central bank to act in May,” Dan Hanson, UK economist for Bloomberg Economics, said. One could hardly imagine what Britons will do if the price of most goods doubles just in one day.
